Your accounting firm is misinformed. If you had a work pass, you wouldn't be non-resident and you wouldn't be subject to the non-resident director withholding.Da_Ku wrote:Thanks for the responses, a little more info as requested.
Yes I am a non-resident director/CEO and majority shareholder. I understand the 22% which is fine. However, my accounting firm in Singapore got back to me saying I need to apply for a work pass in order for me to be able to draw a salary from my company. Is this information correct?
I don't plan on moving to Singapore (yet) so not sure why I would need a work pass when I'm not working/living in Singapore.
Thanks a lot
You're not drawing a salary. You're drawing director's fees. Use the correct terminology and it will be much easier for people to help you. You don't need a Workpass for director's fees AFAIK.Da_Ku wrote:Thanks for the responses, a little more info as requested.
Yes I am a non-resident director/CEO and majority shareholder. I understand the 22% which is fine. However, my accounting firm in Singapore got back to me saying I need to apply for a work pass in order for me to be able to draw a salary from my company. Is this information correct?
I don't plan on moving to Singapore (yet) so not sure why I would need a work pass when I'm not working/living in Singapore.
Thanks a lot
It doesn't matter if he draws directors fees or a salary. If he is listed as a non-resident director at ACRA, any and all sums paid to him are taxable at non-resident rates. Even if he weren't listed as a non-resident director, IRAS would assume that because he is a principal shareholder, any money paid to him would be as a senior manager and also subject to non-resident tax. This is because non-resident directors and certain professionals performing services for a company are considered rendered in Singapore since you are an officer/manager of a Singapore company. There are a number of webpages on the IRAS website delineating the difference between and employee and a professional.PNGMK wrote:You're not drawing a salary. You're drawing director's fees. Use the correct terminology and it will be much easier for people to help you. You don't need a Workpass for director's fees AFAIK.Da_Ku wrote:Thanks for the responses, a little more info as requested.
Yes I am a non-resident director/CEO and majority shareholder. I understand the 22% which is fine. However, my accounting firm in Singapore got back to me saying I need to apply for a work pass in order for me to be able to draw a salary from my company. Is this information correct?
I don't plan on moving to Singapore (yet) so not sure why I would need a work pass when I'm not working/living in Singapore.
Thanks a lot
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